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Worried about China’s ongoing rare earths stranglehold and further cutbacks of exports, Japan looks to diversify its rare earths supply basis. While a delegation of Japanese business leaders recently urged China to ensure a stable supply to Japan, the Japanese government is stepping up its efforts to find alternative sources for the sought-after commodity.

In the wake of China blocking rare earths shipments to Japan in the fall of 2010, Vietnam and Japan agreed to explore and develop REEs in the neighboring country.  Now, the Japanese government is turning to Burma to secure rare earths supply for its ailing high-tech industries. According to the Kyodo news agency, informal discussions are taking place while a formal deal with the Burmese government will be sought during the foreign minister’s next visit to Japan.

Against the backdrop of Tuesday’s news that China has again ordered a further tightening of its export controls on rare earth elements, Japan’s efforts should be seen as another wake-up call that the time to free ourselves from our unnecessary dependency on foreign metals and minerals – be it rare earths or other non-fuel resources we possess but have failed to develop – is now.

The British Geological Survey (BGS) recently released its supply risk index for critical minerals, which makes the United Kingdom the latest country to zero in on the issue of resource dependency.

The study ranks 52 elements or element groups based on a number of factors that impact supply, including each element’s abundance in the Earth and the distribution of deposits. Also emphasized in the report are so-called “human factors ” – geopolitics, resource nationalism, and events such as strikes and accidents – as most likely causes for supply disruptions.

Not surprisingly, rare earths elements (REE), which we have been discussing frequently on our blog, rank near the top of the BGS supply risk index. Other prominently-featured critical elements include platinum group metals, antimony, niobium and tungsten, due to a restricted supply base and relatively low political stability ratings for major producing countries. Perhaps most strikingly, the report also visualizes China’s current role as leading global producer for 27 of the 52 elements or element groups in a chart on page three.

The BGS study, which is well worth a read, will likely fuel the mineral strategy debate in Britain. One can only hope that here, too, policy makers, industry and consumers too, begin to pay more attention to the issue of resource dependency and possible supply disruptions – an issue we could tackle head-on by focusing on the vast mineral riches we possess but so far fail to develop.

In an effort to secure access to critical metals and minerals, Germany’s national industrial association, the Federation of German Industry (BDI) is exploring the formation of a “globally active profit-oriented raw materials corporation.” As the German monthly Manager Magazin reports, the envisioned procurement trust, which companies like chemicals maker Evonik and auto manufacturer Daimler have [...]

Today, the Fraser Institute — which is not only Canada’s leading free-market think tank, but also employs two of American Resources’ distinguished subject- matter experts, Fred McMahon, and Jean-Francois Minardi — released the 2011 iteration of their annual Economic Freedom of the World report, available at www.freetheworld.com. The study looks at how the interplay of [...]

A weaker-than-expected jobs report in the U.S. has seen the price of gold soar once again.   Gold’s surge and paper currency’s weakness may be related to Venezuelan President Hugo Chavez’s plans to shift up to $6.3 billion in U.S. dollars, euros and pounds sterling to banks in China, Russia and Brazil, and to repatriate almost [...]

American Resources introduced itself to Capitol Hill staff this week, briefing Senate staff on Tuesday followed by a House briefing Wednesday.  I was joined by Laura Skaer of the Northwest Mining Association (NWMA), Betty Gibbs of the Mining & Metallurgical Society of America (MMSA), and Izzy LaBranch of NWMA’s “The More  You Dig” initiative. During [...]

Well, you won’t see that headline atop of pieces like this one in the Alaskan press, but it’s a logical extension of policy actions like the one proposed to stop a copper/gold/molybdenum mine in Alaska.  In this case, we’re told that we can either allow the mine to proceed – or we can save the [...]

Reuters reports that concern over the supply shortage of key Rare Earths elements has led policymakers in the U.S., the EU and Japan to schedule an early October meeting in Washington.  According to a U.S. Government source: Experts and officials will discuss …how to team up to develop high-tech goods – such as electric car [...]

Buried in a piece at Mining.com about South Korea and Bolivia’s joint-venture to develop the latter nation’s significant lithium reserves – critical to lithium-ion batteries used in cell phones, laptops and electric cars – is this comment from Argentinean officials: Argentina is promoting the idea of an OPEC-like cartel for itself, Bolivia and Chile – [...]

WASHINGTON, D.C. — The American Resources Policy Network has announced two new volunteer directors who will advise American Resources Principal Daniel McGroarty on the direction of the organization: Anne Darconte, Former Director of Outreach at the National Petrochemical & Refiners Association (NPRA), and Captain Nelson P. Jackson, U.S. Navy (Ret.), President and principal owner of [...]